A New Orleans church should repay over $200,000 for misusing federal disaster funds distributed by the state after Hurricane Katrina, according to a report from the Louisiana Legislative Auditor's Office. The church, Victory Gospel Chapel Ministries of New Orleans,
received the FEMA money to undertake repairs but has not yet completed the
projects.

"Victory Gospel hasn't done
any of the things they were supposed to do," Legislative Auditor Daryl Purpera said Monday after the report was released. "They need to
pay back the $202,000."

The church provided
rehabilitation services for substance abuse victims at their Chef Menteur Highway location since 2003.

The total FEMA funding amount of $201,901 was meant to pay for eight repair projects approved in 2007, including building repair for $115,000, replacement of lost church property for $56,000 and fence repair for $30,000.

By August 2011, all but $1,170 of the money had
been spent but none of those projects were completed, a site inspection by the Governor's Office on Homeland Security and Emergency Preparedness showed. The church has also
been unable to produce documentation for work completed with the money.

Victory Gospel Pastor Gary Harry said in a
statement the money was used to open a temporary facility, provide for upkeep of the damaged
property as well as make minor repairs to the church's fence.

New Orleans-based Victory Gospel Chapel Ministries should repay over $200,000 in federal disaster relief funds after a state audit showed repairs meant to be done with the money were incomplete. According to FEMA records, repairs to this building cost $43,000.Legislative Auditor

However, the GOHSEP site inspection showed little to no work had
been done. Harry said this was because much of the fencing and content
purchased with the funds was stolen.

Harry added some of the original FEMA checks
were sent to the wrong non-profit organization and never recovered.

However, GOHSEP contended the funds should never have been
disbursed to the church because another entity, M and V, LLC, was listed as the insured party on official
documents at the time of the Katrina.

FEMA originally denied funds to the church but later allowed them to be distrubuted to Victory Gospel after the church provided documents showing it was responsible for
repairs to the site. Because the projects have yet to be completed, FEMA reversed course again and determined
Victory Gospel is not responsible for the site's repairs and should not have received the money.

The
Legislative Auditors report therefore recommended GOHSEP seek reimbursement of the full amount. It also recommended GOHSEP provide better training
to nonprofits on appropriate use of grant funds to avoid this problem in
future.

Purpera
said unless the federal government decides to take steps to recover the money,
"it will be very difficult
for us to recover those funds." Attempts to
contact Victory Gospel on Monday were unsuccessful.